Equipment Survey

After a banner year for materials handling automation indicators last year, our annual equipment outlook survey reveals a more conservative approach to spending on automation, equipment and related software -- however, the indicators didn't decline drastically.

Warehouse and DC managers are feeling the pressure of e-commerce growth, high order volumes, as well as deep concerns around labor availability and international supply chain snarls. In response, our survey found that they’re ramping up spending for automation—but also spending more on their labor force to ensure an adequate pool of workers to keep goods flowing.

In this year’s annual survey, the disruption of the past year certainly influenced some short-term trends, but respondents are optimistic going forward. Results reflect more than a bump in the road, however. Companies are deeply concerned about issues like labor availability, workload planning and tighter cycle times, prompting interest in technology and software solutions, better metrics and further automation.

The percentage of respondents “holding off” on investments dropped modestly, and the overall spending outlook remains steady. The survey’s big picture has respondents staying close to the high bar for spending set in recent years, while layering in select investments to help solve for top challenges like tighter cycle times, additional customer requirements and the need to maximize available workforce.

Spending on 3PL services and new technologies are all part of a more deliberate approach to figuring out the right mix of equipment, software and services to manage the stress of today’s labor market and order fulfillment pressures.

Our annual survey reveals a bullish outlook for continued material handling investments, with enthusiasm extending into newer technologies such as robotics as well as warehouse control system software and the closely related category of warehouse execution systems.

Our annual survey of reader investment levels in materials handling equipment and technology shows that with e-commerce-related pressures growing, they’re bumping up investment in the key enablers for flexibility and efficiency.

Capital expenditure plans for materials handling solutions are ebbing overall, but restrained spending on hardware is balanced by steady investment in IT solutions that tie equipment together.